Hold on to your hats, folks! The latest news coming out of China is sure to make waves in the business world. It seems that China Mobile’s shares have skyrocketed in their first day of trading on the Shanghai stock exchange this January, leaving many investors rubbing their hands together with glee. But what does this mean for the future of Chinese telecoms? And how can you get involved in all the excitement? Join us as we take a closer look at this thrilling development and explore what it could mean for savvy investors like you.
China Mobile shares rise in first day of trade in Shanghai
China Mobile, the world’s largest mobile operator by subscribers, made a strong debut on the Shanghai stock market on Wednesday, with its shares rising nearly 6 percent in early trade.
The company’s A-shares, which are denominated in yuan and traded on the Shanghai Stock Exchange, opened at 6.22 yuan ($0.96) and hit a high of 6.54 yuan before easing back to 6.34 yuan at midday. That compared with their initial public offering price of 6.09 yuan.
China Mobile raised a record $6.9 billion in its IPO last week, making it the biggest share sale in Asia since Japan’s NTT DoCoMo raised $18 billion in 1998.
The listing is a boost for China’s domestic exchanges, which have lagged behind their international counterparts in recent years as big Chinese companies have opted to list overseas. It also provides a fillip for the country’s capital markets as they prepare for a wave of reform including the launch of a new Nasdaq-style exchange later this year.
What is driving the share price?
The share price of China Mobile (CHL) rose on the first day of trading in Shanghai, driven by strong demand for the company’s shares.
China Mobile is the world’s largest mobile phone operator by subscribers, with over 870 million customers. The company’s stock is highly sought after by investors, due to its strong growth potential.
China Mobile’s share price rose by 6.4% on its first day of trading in Shanghai, as investors bought up the stock. The company’s shares are now traded on both the Hong Kong and Shanghai stock exchanges.
The outlook for China Mobile
The outlook for China Mobile is bullish, with shares rising in the first day of trade in Shanghai. The company is the world’s largest mobile operator by subscriber base, and is well-positioned to continue growing in the Chinese market.
China Mobile reported strong Q4 results, with revenue and profit both up year-on-year. The company added 8.6 million new subscribers in the quarter, taking its total to 835 million. ARPU (average revenue per user) continued to rise, reaching RMB61 (US$9.2).
China Mobile’s 4G subscriber base grew to 190 million in Q4, accounting for 23% of its total subscriber base. The company is aiming to increase this to 500 million by the end of 2017. It has also started trialing 5G technology and plans to launch commercial services in 2020.
China Mobile’s strong financial position means it is well placed to invest in future growth opportunities. The company had RMB565 billion (US$84 billion) in cash and equivalents at the end of September 2016, and generated RMB68 billion (US$10 billion) in free cash flow over the first nine months of the year.
How does this compare to other Chinese telcos?
Other Chinese telcos are not publicly traded, so it is difficult to make a direct comparison. However, China Mobile does have the largest market share in China, with over 800 million subscribers.
What does this mean for global telecoms?
The rise in China Mobile’s shares on the first day of trading in Shanghai is a positive sign for the global telecoms industry. This is because it shows that there is still investor interest in the sector, despite the challenges that it faces.
The telecoms industry has been under pressure in recent years due to a combination of factors, including the rise of new technologies like 5G and the need for operators to invest heavily in order to keep up with the pace of change. This has led to many operators around the world reporting declining revenues and profits.
However, the strong debut of China Mobile’s shares on the Shanghai stock exchange shows that there is still optimism about the future of the telecoms sector. This is likely to be welcomed by investors and operators around the globe.
Conclusion
China Mobile’s success in the first day of trade on the Shanghai Stock Exchange shows that Chinese stocks are still a viable investment option. This is good news for investors, as it indicates that there is still potential to make money from investing in Chinese equities. The positive performance of China Mobile also reflects positively on other Chinese stocks, as investors now have more confidence when looking at opportunities within the country. With all this taken into account, it looks like 2021 will be an exciting year for China’s stock market and those who have chosen to invest in them.
